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Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings

Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 Gross Pay for September ن فة a. b. C. $ 6,600 2,200 131,600 $ 500 2,300 8,200 Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). Note: Round your answers to 2 decimal places. a) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security $ 500.00 6.20% $ 31.00 FICA-Medicare 500.00 1.45% 7.25 FUTA 400.00 0.60% 2.40 SUTA 400.00 5.40% 21.60 b) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security $ 2,300.00 6.20% $ 142.60 FICA-Medicare 2,300.00 1.45% 33.35 FUTA SUTA c) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security 2,300.00 0.60% 13.80 2,300.00 5.40% 124.20
Transcribed Image Text:BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to its employee. Gross Pay through August 31 Gross Pay for September ن فة a. b. C. $ 6,600 2,200 131,600 $ 500 2,300 8,200 Compute BMX's amounts for each of these four taxes as applied to the employee's gross earnings for September under each of three separate situations (a), (b), and (c). Note: Round your answers to 2 decimal places. a) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security $ 500.00 6.20% $ 31.00 FICA-Medicare 500.00 1.45% 7.25 FUTA 400.00 0.60% 2.40 SUTA 400.00 5.40% 21.60 b) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security $ 2,300.00 6.20% $ 142.60 FICA-Medicare 2,300.00 1.45% 33.35 FUTA SUTA c) Tax September Earnings Subject to Tax Tax Rate Tax Amount FICA-Social Security 2,300.00 0.60% 13.80 2,300.00 5.40% 124.20
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